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Updated about 5 years ago,
IRR with little to none cash flow
2 bedroom 1 1/2 Bath Townhome
1100 SF
Purchased property for $83,500
Closing/repairs : $8,000
ARV : $105,000
Rent : $895 per month
(2% Rent growth, 3% appreciation)
Loan : 15 year, 15% down 5.75% Interest rate fixed conventional
1st Year (IRR) 98.60%
Cash flow $295 (Annual)
15th Year (IRR) 17.20%
Cash flow $2,205 (Annual)
30th Year (IRR) 13.98%
Cash flow $11,748 (Annual)
Purchased property at 18 years old, currently 20 and ready to buy second.
Could of cash flowed more if I did 30 year loan, but would like it paid off in 15 years.
Going forward should I try to cash flow more? Or stick with 15 year loans.... or should I do every other 15/30
Thanks for your time, Justin